Bali Corporation Announces Dutch Auction Tender Offer for Share Buyback

In reaction to current stock market instability, Bali Corporation has revealed a revised Dutch auction tender proposal to buy back a maximum of 190 million shares currently held by investors. This constitutes 19% of the firm’s overall equity.

The corporation has established a cost spectrum for the repurchase ranging from $19.25 to $22 per share. This signifies their willingness to expend up to $190 million to acquire their own stock.

The tender proposal will commence on June 24, 2022, and is projected to conclude on July 22, 2022, although Bali Corporation maintains the authority to prolong or terminate the proposal prematurely.

Bali Corporation is dedicated to restoring capital to its stakeholders. This buyback constitutes a component of a broader strategy that encompasses a previously declared $350 million capital restitution program.

The enterprise will ascertain the ultimate acquisition cost upon the culmination of the tender proposal timeframe. Their objective is to acquire the maximum number of shares feasible within the $190 million allocation.

Every share procured through the tender proposal will be acquired at an identical cost, which could be greater or lesser than the market valuation during or preceding the proposal timeframe. Bali Corporation plans to fund the buyback utilizing available cash reserves and current assets. They are additionally equipped to secure funds under their existing credit agreements if required.

Standard General Corporation, holding a significant 22% stake in Bally’s, remains tight-lipped about a possible acquisition. Neither the corporation, nor Bally’s leadership team, has revealed their intentions regarding a complete takeover.

Both groups have committed to full disclosure throughout these proceedings. In the event of a buyout proposal, Bally’s will issue a formal declaration a minimum of six working days prior to the offer’s termination.

If the transaction advances, Goldman Sachs will assume the role of primary financial counselor. First Capital Securities, Truist Securities, and Wells Fargo Securities will function as collaborative financial consultants.